Air China (OTCMKTS:AIRYY – Get Free Report) and United Airlines (NASDAQ:UAL – Get Free Report) are both large-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Earnings and Valuation
This table compares Air China and United Airlines”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Air China | $23.19 billion | 0.69 | -$32.35 million | $0.02 | 911.00 |
| United Airlines | $59.07 billion | 0.59 | $3.35 billion | $10.22 | 10.50 |
Profitability
This table compares Air China and United Airlines’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Air China | 0.19% | 0.79% | 0.09% |
| United Airlines | 5.68% | 25.13% | 4.56% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Air China and United Airlines, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air China | 0 | 0 | 0 | 0 | 0.00 |
| United Airlines | 0 | 2 | 15 | 0 | 2.88 |
United Airlines has a consensus price target of $135.97, indicating a potential upside of 26.66%. Given United Airlines’ stronger consensus rating and higher possible upside, analysts clearly believe United Airlines is more favorable than Air China.
Risk & Volatility
Air China has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500. Comparatively, United Airlines has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.
Insider and Institutional Ownership
69.7% of United Airlines shares are owned by institutional investors. 0.6% of United Airlines shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
United Airlines beats Air China on 12 of the 14 factors compared between the two stocks.
About Air China
Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, China, and internationally. The company operates in Airline Operations and Other Operations segments. It provides aircraft engineering and airport ground handling services. The company is also involved in the import and export trading activities; and provision of cabin, airline catering, air ticketing, human resources, aircraft overhaul and maintenance, and financial services. Air China Limited was founded in 1988 and is headquartered in Beijing, the People's Republic of China.
About United Airlines
United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. The company transports people and cargo through its mainline and regional fleets. It also offers catering, ground handling, flight academy, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.
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